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Event Cancellation Insurance Costs Explained: How Much Should You Expect to Pay?


When planning a big event, unexpected things can sometimes disrupt even the most carefully laid plans. That’s where event insurance comes into play. But how much does event cancellation insurance cost? Knowing this upfront can help you budget better and avoid stressful surprises.

In general, event cancellation insurance costs about 90 cents per $100 of exposure, but this can vary based on several factors. For example:

  • Type and Size of Event: Larger events usually mean higher costs.
  • Location and Time of Year: Outdoor events in risky weather seasons can be pricier to insure.
  • Expenses Covered: Non-refundable deposits, special attire, and more.

I’m Terry Green, President of eSports Insurance. For over two decades, I’ve helped teams and organizations find the best insurance options. My experience gives me unique insights into the many factors influencing how much does event cancellation insurance cost.

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What Is Event Cancellation Insurance?

Event cancellation insurance provides financial protection if unforeseen circumstances force you to cancel or postpone your event. This type of policy can cover a wide range of financial losses, from nonrefundable deposits to specific vendor issues.

Types of Events Covered

Event cancellation insurance can apply to a variety of events, ensuring that you don’t face financial ruin if something goes wrong. Here are some common types of events that are typically covered:

  • Weddings: Imagine you’ve planned a $20,000 wedding, and a sudden illness forces you to cancel. This insurance can cover nonrefundable deposits and other costs.
  • Corporate Events: Conferences, conventions, and company parties can be expensive. Insurance can cover venue costs, speaker fees, and more.
  • Festivals: Whether it’s a music festival or a local fair, these events often involve significant upfront costs.
  • Sports Events: From major league games to local tournaments, insurance can cover various aspects like venue rental and promotional costs.

Common Perils Covered

The perils that event cancellation insurance covers are those beyond the control of the event organizer. Here are some examples:

  • Weather: Severe weather conditions like hurricanes, heavy snow, or floods can force event cancellations.
  • Illness or Injury: If a key speaker, performer, or even the guest of honor falls ill or gets injured, the event may need to be postponed.
  • Venue Issues: Sometimes, the venue itself can become unusable due to power failures, structural damage, or even double bookings.
  • Non-Appearance: Essential personnel like performers or speakers not showing up can lead to event cancellation.
  • Political Unrest: Events can be disrupted by strikes, terrorism, or other forms of civil unrest.
  • Natural Disasters: Earthquakes, floods, and other natural calamities can make it impossible to hold the event.

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Understanding these elements can help you see the value in having event cancellation insurance. In the next section, we’ll dive into how much does event cancellation insurance cost and what factors influence these costs.

How Much Does Event Cancellation Insurance Cost?

Factors Influencing Cost

Event cancellation insurance can be surprisingly affordable, but costs can vary widely based on several factors. Here’s a breakdown of what influences these costs:

  • Event Size and Type: Larger events with more attendees usually cost more to insure. For example, a corporate gala with 500 guests will have a higher premium than a small wedding with 50 attendees. The type of event also matters. High-risk events like outdoor festivals will cost more than indoor conferences.

  • Location: The event’s location plays a big role. An outdoor event in Florida during hurricane season is riskier (and thus more expensive to insure) than an indoor event in a location with stable weather conditions.

  • Time of Year: Events planned during seasons known for extreme weather (like winter snowstorms or hurricane season) will have higher premiums.

  • Coverage Limits: Higher coverage limits mean higher premiums. If you want your policy to cover up to $1 million in losses, you’ll pay more than if you only need $100,000 in coverage.

  • Timing of Purchase: Buying insurance well in advance can lock in better rates. Policies can usually be purchased from a year in advance up to 15 days before the event. Early purchase often means better terms and lower costs.

Typical Cost Ranges

So, how much does event cancellation insurance cost on average? Let’s look at some typical ranges:

  • Small Events: For smaller events like intimate weddings or small business gatherings, you might pay around $90 per $10,000 of coverage. For example, if your event costs $20,000, your insurance might be around $180.

  • Large Events: Larger events like corporate conferences or large-scale festivals can see costs averaging 90 cents per $100 of exposure. So, a $100,000 event could cost about $900 to insure.

  • Average Premiums: Based on data from various sources, the average cost for one-day event insurance is around $278. For events lasting 2 to 10 days, the average cost drops slightly to $250. Events longer than 10 days average about $282.

These figures give a general idea, but the exact cost will depend on your specific event details.

Premium Calculation

Insurance companies calculate premiums based on the risk factors mentioned above. They consider the likelihood of an event being canceled or postponed and the potential financial impact. This helps them determine a fair price for the coverage.

To get the best deal, compare quotes from different providers, and make sure you understand what each policy covers. Some policies might offer more comprehensive coverage for a slightly higher premium, which could be worth the extra cost.

In the next section, we’ll discuss when to buy event cancellation insurance to maximize benefits and secure the best terms.

When to Buy Event Cancellation Insurance

Benefits of Early Purchase

Advance purchase of event cancellation insurance can make a big difference. Buying your policy early helps you lock in the best terms and pricing. But why is this so important?

Timing matters because the cost of insurance can vary based on when and where your event is happening. For instance, if your event is in a region prone to snowstorms or hurricanes, buying insurance closer to the event date may result in higher premiums. By purchasing in advance, you can avoid these seasonal price hikes.

Another reason to buy early is to secure better terms. Insurers often offer more favorable conditions to those who plan ahead. This can include lower deductibles or higher coverage limits, which means more protection for your investment.

Locking in pricing early also shields you from unexpected rate increases. The cost of event cancellation insurance is typically around $0.90 per $100 of exposure, but this can vary. By purchasing your policy well in advance, you ensure that your rate stays the same, even if market conditions change.

Additionally, early purchase can help you deal with potential facility problems. If your venue becomes unavailable, having insurance in place can cover the costs of rebooking at another location. This is crucial for events that require specific facilities and can’t easily be moved.

In summary, buying event cancellation insurance early offers several benefits:
Lock in pricing
Secure better terms
Avoid seasonal price hikes
Protect against facility issues

In the next section, we’ll explore what event cancellation insurance covers, including nonrefundable deposits and vendor issues.

What Does Event Cancellation Insurance Cover?

Event cancellation insurance can be a lifesaver when unforeseen events derail your plans. Here’s a breakdown of what this insurance typically covers:

Nonrefundable Deposits

One of the primary benefits of event cancellation insurance is coverage for nonrefundable deposits. If you’ve paid a deposit for a venue, photographer, caterer, or other vendors and your event gets canceled, your insurance can reimburse you for these costs.

Vendor Issues

Imagine your caterer backs out at the last minute or your band cancels. Vendor issues like these can be stressful and costly. Event cancellation insurance can cover the expenses incurred from finding a last-minute replacement or the lost deposits if a vendor fails to show up.

Special Attire and Jewelry

Weddings and other formal events often involve expensive attire. If your wedding dress or special jewelry gets damaged or lost, insurance can cover the replacement costs. Special attire coverage is particularly useful for high-value items like wedding rings or custom gowns.


Gifts given or received as part of the event can also be covered. If they are damaged or lost due to the event being canceled or postponed, your insurance can reimburse you for these items.

Coverage Limits and Deductibles

Every policy has a maximum reimbursement limit, which is the highest amount the insurance will pay out. It’s essential to know this limit to ensure it meets the potential costs of your event.

Additionally, most policies come with deductible payments. This is the amount you must pay out of pocket before the insurance kicks in. For example, if your deductible is $500 and you have a claim for $2,000, you will pay the first $500, and the insurance will cover the remaining $1,500.

Understanding these aspects of your policy will help you know what to expect if you need to file a claim.

In the next section, we’ll dive into the frequently asked questions about event cancellation insurance, including whether it’s worth the investment.

Frequently Asked Questions about Event Cancellation Insurance

Is Event Cancellation Insurance Worth It?

Absolutely. Think of event cancellation insurance as a safety net for your special event. If unexpected things happen—like extreme weather, a key vendor bailing, or a sudden illness—this insurance can save you from losing a lot of money.

For example, a couple planning a $20,000 wedding could face huge financial losses if they have to cancel last minute due to a hurricane. With event cancellation insurance, they could get reimbursed for nonrefundable deposits and other costs, giving them peace of mind.

How to Calculate Event Insurance Costs?

Calculating event insurance costs involves a few steps. Here’s a simple formula to help you:

ROI Formula:
[ \text{ROI} = \frac{\text{Expected Benefits}}{\text{Expected Costs}} ]

Expected Benefits: This includes potential reimbursements for nonrefundable deposits, vendor issues, and other covered expenses.

Expected Costs: This is the premium you pay for the insurance. On average, it’s about 90 cents per $100 of coverage. So, for a $20,000 event, expect to pay around $180.

Example Calculation:
Expected Benefits: $15,000 (potential nonrefundable costs)
Expected Costs: $180 (premium)

[ \text{ROI} = \frac{15,000}{180} \approx 83 ]

A high ROI shows that the insurance is likely worth it.

Can You Buy Event Cancellation Insurance for Any Event?

Not all events are eligible for cancellation insurance. Here are some common event types that can be covered:

  • Weddings: Coverage for venue deposits, attire, and more.
  • Corporate Events: Protection against vendor cancellations and venue issues.
  • Festivals and Fairs: Coverage for weather-related cancellations.
  • Sports Events: Insurance for non-appearance of key players or venue problems.

However, some events are typically excluded, like bachelor/bachelorette parties, events with animals or explosives, and paid attendance events like concerts.

It’s best to check with your insurance provider to see if your specific event qualifies for coverage.

Next, we’ll look into the timing and benefits of purchasing event cancellation insurance.


At eSportsInsurance, we understand the unique needs of event organizers. Our tailored coverage ensures you are protected against a wide range of unexpected circumstances, from weather disruptions to venue issues. We offer competitive pricing to help you safeguard your investment without breaking the bank.

By choosing eSportsInsurance, you gain access to our expertise and personalized service. We work with various carriers to find the best policy for your specific event, ensuring you get the most comprehensive protection at the best price.

Don’t leave your event’s success to chance. Secure your peace of mind with our event cancellation insurance today.